The war on crypto, which started with the US Securities and Exchange Commission suing Ripple, is now over.
Ripple CEO Brad Garlinghouse has announced that the SEC has agreed to drop its lawsuit against the company, effectively ending the over four-year-long legal battle. Pending a formal vote by the Commission, the SEC will withdraw its appeal of Judge Analisa Torres’ July 2023 ruling, which had determined that XRP is not inherently a security.
The XRP price has skyrocketed by over 10% following Garlinghouse’s announcement, trading at $2.52 at press time. Analysts predict a strong bullish continuation for XRP in the coming weeks, although sideline investors may wish to exercise caution.
In a statement shared on social media, Garlinghouse characterized the lawsuit as an unsuccessful attempt by the SEC to exert regulation on the cryptocurrency sector through enforcement actions. He described the case as “doomed from the start.” He noted that the legal victory will encourage the establishment of clearer regulatory frameworks in the future.
The SEC's legal battle against Ripple began back in December 2020 when the agency accused Ripple of selling XRP as an unregistered security, a claim that has since faced significant scrutiny. In Judge Torres' initial ruling, she specified that while Ripple's programmatic sales did not violate the Securities Act, its institutional sales did. This distinction has led many to believe that while sales to retail investors via exchanges are not securities transactions, sales to institutional investors still fall under stricter regulations.
Following the announcement on March 19, the XRP price surged to a high of $2.56. Investor enthusiasm soared, with XRP's perceived non-security status fueling optimism for its future price while potentially paving the way for increased institutional interest.
As the SEC's withdrawal from the appeal is seen as a pivotal moment for both Ripple and the wider crypto community, it has implications for future market regulations. Garlinghouse commented that the SEC’s actions have cost XRP holders around $15 billion in market value over the course of the lawsuit, labeling the agency a “market manipulator.”
The SEC’s retreat from the appeal could also lead to an uptick in discussions surrounding the approval of spot ETFs for XRP, with analysts suggesting a rapid timeline for potential institutional investments. As Garlinghouse indicated, “I truly believe there’s an immense opportunity with the largest economy finally taking a pro crypto and a pro innovation approach.”
Despite the positive sentiment around XRP, some analysts advise caution. Crypto analyst Tony believes that while XRP may continue upward, a sideways movement and potential downside could occur before any significant bullish reversal. Thus, investors are advised to await a retest of the $2.20 level or a breakout from $2.80 before making further purchases of XRP.
Meanwhile, Ethereum has also garnered significant attention with its price surpassing $2000, showing a resilient bullish trend. Other assets within the Ethereum ecosystem are witnessing substantial interest as smart money shifts towards high-upside projects.
As the wave of interest continues, the presale of MIND of Pepe, an AI agent crypto built on Ethereum, has also surged past $7.4 million, demonstrating that investors are keen to capitalize on emerging trends within the crypto market.
In summary, the SEC's decision to drop the Ripple lawsuit marks a transformative moment within the realm of cryptocurrency, restoring confidence and potentially igniting a fresh wave of institutional interest. Analysts' targets for XRP in 2025 range from $2.05 to as high as $5, highlighting optimism that could play out as regulatory clarity takes shape.
With Garlinghouse's assertion that Ripple can now pursue innovation without the shadow of litigation, the crypto market seems poised for potential growth as it navigates a more favorable regulatory environment.
